Marketing is the process of delivering the right product to the right person at the right place and at the right price (Kotler 2012). In this regard, it can be said that different kinds of aspects are there in the process of marketing. Many people all over the world consider the concept of marketing and selling as the same process. In actual, this is not the case as marketing is a broader concept than selling. It can be said that selling is one of a parts of marketing. Apart from selling, there some major parts of marketing; that is called the 4Ps of marketing mix. These 4Ps refer to product, place, price and promotion. At the time of preparing the marketing plan of the business organization, the marketing managers must consider the aspect of marketing mix (Armstrong et al. 2014).
In this regard, a major concept is the process of marketing plan. The main objective of the marketing plan of the business organizations is to achieve the overall marketing objective of the organizations. Marketing plan incorporates the overall marketing objectives, marketing strategies and different marketing programs in order to achieve the marketing objectives (Kotler et al. 2015). The process of marketing planning involves the setting of marketing objectives and targets and the marketing communication plan so that the marketing objectives can be achieved. The main objective of this particular report is to develop a marketing plan for the next three years for XYZ Bank Limited. For the purpose of this marketing plan, some of the major factors need to be taken into consideration or need to be analyzed. They are Porter’s Five Forces analysis, BCG matrix analysis, GE analysis, consumers’ analysis and others. Based on the analysis of all these above-mentioned aspects, the marketing plan for XYZ Bank Limited is drawn.
XYZ Bank Limited is Australia’s one of the largest public companies. The main products of the business organizations are the banking products; they are various banking services that include retail banking, investment banking, various financial services, leasing and insurance. XYZ Bank Limited operated throughout the Australia and New Zealand with the help of more than 1500 active branches all over Australia and New Zealand. The company is listed under the Australian Stock Exchange and the employee base of the company is more than 40,000. XYZ Bank Limited is well known for its experience sales team.
XYZ Bank Limited faces competition from the other banks who deals in the same sector and same place. Porter’s five force model is one of the analytical tools that are used by the management for analyzing the significant forces that intensifies completion within an industry as well as affects level of profits (Zimková 2016).
Intensity of Existing Rivalry- Level of competition within the banks are highly competitive because of promotion by the government for bringing competition to the industry as well as new competition from new competition especially from non-traditional institutions. Government policies as regulators actually dictate the level of competition within the industry.
Threat of Substitutes- There is limited number of substitutes that reveals the fact where customers can easily find other products or services that fulfill their needs. It is reviewed there are various types of lenders that appears in the Australian lending markets after financial deregulation.
Threat of new entrants- It is noted that threat to new entrants in the industry is low especially for Australian market because of barriers to entry that include regulations as well as required capital that is determined by switching costs, learning and reputation as well as economies of scale (Rothaermel 2015).
Bargaining power of suppliers- It has been noted that in the past 3 years the main suppliers of the banking industry in Australia are customers, legal services as well as accounting services and financial market. In that case, legal entities majorly provides some of the legal services to banks that gets related to contracts with the potential clients as well as other legal issues where the accounting firms render accounting services in relation to financial statement preparation, accounting issues and tax auditing (Lages 2016).
Bargaining power of customers- The customers in the Australian banking sector include individuals as well as households especially for retail banking where the business involves for business borrowing. Addition to that, customers in the Australian banking industry have bargaining power for selecting ways in assessing substitute products of regional as well as foreign banks.
BCG Matrix is one the chart that was introduced by Bruce Henderson for the Boston Consultancy Group in the year 1970 that help XYZ Bank Limited for predicting the business units or in that case product lines. Addition to that, XYZ Bank Limited engages in allocating resources as well as used as an analytical tool especially portfolio analysis, product management as well as brand marketing and strategic management (Hill, Jones and Schilling, 2014).
XYZ Bank Limited
XYZ Bank Limited standards at star position as shown in the BCG matrix. In addition, the bank has high market growth as well as high market share at the same time. It is thereby noted that banking industry has growth potential due to increased disposal income of customers as well as increased working class hat adds to volatility in the banking industry. This bank measures the significance of savings that discusses the fact that there is still untapped market that needs proper attention.
XYZ Bank Limited Insurances- As far as insurance sector is concerned; XYZ Bank Limited comes under the star position. The insurance products of XYZ Bank Limited have high market share as well as high growth rate. Therefore, XYZ Bank Limited has lot of opportunity especially for investment purpose.
XYZ Bank Limited Mutual Funds- The mutual funds of XYZ Bank Limited comes under the cash cow position. This reveals the fact that XYZ Bank Limited has high market share as well as low market growth (Eden and Ackermann 2013).
XYZ Bank Limited Leasing- The leasing of XYZ Bank Limited comes under dog position. This quadrant is in between high market growth and low on market share. Leasing of the particular growth has low market share that needs to be revised by the bank.
XYZ Bank Limited investment banking- The investment banking of XYZ Bank Limited comes under the question market position. This means the investment banking for XYZ Bank Limited has low market share and growth at the same time (Hill, Jones and Schilling, 2014).
The general electric matrix was introduced by GE that identifies the market position as well as profitability in various business units that depends upon the market attractiveness and business unit strength. GE matrix is better as well as superior after comparing it with BCG Matrix.
Factors affecting the market attractiveness
Factors affecting the business unit strength
After looking at the two dimensions such as business unit strength and market attractiveness, it is 3*3 matrixes that come under GE Model. This particular matrix explains with the diagram and it helps in undertaking respective strategic decisions. The four strategic decisions depend upon the model such as divest, harvest, invest and protect.
The first strategic decision that needs to be made is related to investment. This reveals the fact investment is conducted in the market that depends upon the existing market attractiveness. It is because of the reason why investing activities affects market share of XYZ bank Limited.
The second strategic decision is protecting the condition that means to the situation where trade does now want any kind of fresh investment rather than willing to have security of a given investment (Hill, Jones and Schilling, 2014).
The third strategic decision is harvesting that is the condition where XYZ Limited need to generate cash from the particular investment as it do not require stock accumulation.
The next strategic decisions that are made is divesting where XYZ Limited need to decide over the sale for conducting or in that case is the last option where the bank can undertake divesting strategies for future analysis purpose.
Consumers are considered as one of the major aspects of the business organizations as they are the main source of income for the businesses. Hence, it is necessary for the business organizations to analyze the consumers of the business and all the related aspects regarding them (Achrol and Kotler 2014). The consumers’ analysis of XYZ Bank Limited is done below:
As per the provided description of XYZ Bank Limited, it can be said that the main operation of the company is in the banking field (Jumaev and Hanaysha 2012). Some of the major products of the company are retail banking, investment banking, various financial services, leasing and insurance. From these products, it is not hard to guess the customer type of the company. The customer base of the company includes two types of customers. They are household customers and the business customers (Kozio? et al. 2014). The household customers mainly fall under the retail banking of the company. These customers use the products like savings account, fixed deposit, life insurance and many others. Another category of the customers is the business customers. These customers fall under the section of investment banking, leasing, financial services and general insurance. It can be seen that many business organizations have their collaboration with the XYZ Bank Limited as the official banking partner. On the other hand, it can be seen that many business customers use the investment banking option in order to invest their money in the bank. Hence, from the above discussion, it can be see that XYZ Bank Limited has a large customer base and it includes both the household and business customers (Huang and Sarigöllü 2014).
The worldwide crisis of 2007-2008 has a deep effect on the Australian economy as it changed the consumption pattern of the Australian banking customers. One of the major changes in the consumption pattern of the banking customers is that the household customers of Australia have been saving major portions of their disposal incomes (Solomon, Russell-Bennett and Previte 2012). The household sector borrowing behavior is considered as responsible for this massive turnaround in the saving pattern. Most of the economists all over the world are considering that the increase in the saving behavior of the household people of Australia will be able to intensify the long lasting effect of the global financial crisis of 2007-2008 (Gabriel and Lang 2015). The main reason is that the household people of Australia have become less dependent on the long and short-term debts and they are investing their money to the less risky investment instruments. This is a major consumption pattern of the customers of XYZ Bank Limited. On the other hand, this tendency of saving has decreased the investment tendency of the common people in the risky investment instruments like shares and others. This is a kind of negative side for the XYZ Bank Limited. These are the consumption patterns of the consumers of XYZ Bank Limited.
At the time of financial decision-making process, it can be seen that the customers of the banks use in some certain manners. All the processes of the financial decision-making come under some major decision-making model (Sharma and Alter 2012). There is not any exception of this fact in regards to the customers of XYZ Bank Limited as the process of their decision-making fall under some decision making model. As per the above discussion, it can be seen that the effect of global financial crisis of 2007-2008 is still on the economy of Australia and it is a major influence on the financial decision making of the customers of XYZ Bank Limited. Due to this effect, the customers of XYZ Bank Limited have become more cautious about their financial as well as investment decisions. As an effect of the global financial crisis, the customers of XYZ Bank Limited have started to save a large portion of their disposal income. At the same time, the consumers have become adverse in the process of investing in the high-risk investment instruments. Apart from this, at the time of the process of financial decision-making, the customers of the XYZ Bank Limited are taking consideration all the relevant and important factors that can have an impact on the financial condition of them (Zopounidis and Doumpos 2013).
At the time of running the various business operations, the business organizations have to face some key issues or difficulties. This is also applicable for XYZ Bank Limited as the public company is also facing some major difficulties at the time of running the various business operations. The first issue is to provide topmost priority to the customers of the business (Bryman and Bell 2015). It is a fact that customers are the main source of income for every business organization. In this regard, it is the responsibility of XYZ Bank Limited to give the utmost priority to the customers of the organization. Another major issue is the process of mitigation of the financial risk factors of the bank. Due to the effect of the global financial crisis, the various financial risks of XYZ Bank Limited have increased. This is a major concern for the organization. Hence, in this case, it is another priority of the company to adopt effective strategies to weaken the financial risks of the company. In order to increase the overall efficiency of XYZ Bank Limited, it is needed to have an effective strategic planning approach. This process will increase the overall performance and efficiency of the business organization (Hill, Cronk and Wickramasekera 2013).
The major aim of a marketing plan is to achieve the marketing objectives of the business organizations. In the case of XYZ Bank Limited, there are four marketing objectives. The first objective is to increase the sales of the various banking products of the company (Boone and Kurtz 2013). There are various ways to increase the sales of the products like the introduction of new attractive products, to increase the benefits of the products and services and others. The second objective is to improve the product awareness of the bank. In this case, the bank has to adopt different kinds of promotional and advertisement activities in order to increase the brand awareness of XYZ Bank Limited. The third objective is to be established in the banking market of Australia. It is important for the companies to earn goodwill in the market to be established in the market. The several ways to do it is to increase customers’ loyalty, to deliver superior quality of products, to provide superior quality of services and others. The last objective is brand management (Hollensen 2015). It is essential for the business organizations to make a place in the minds of the customers. For this purpose, XYZ Bank Limited has to adopt proper brand management strategies to improve the goodwill of the brand.
Some key issues can be spotted in XYZ Bank Limited from the marketing audit report of the company. It can be seen that XYZ Bank Limited has a large amount of customer base in both Australia and New Zealand. This aspect serves both as positive and negative for XYZ Bank Limited. XYZ Bank Limited faces some major difficulties at the time of fulfilling the requirements of this large customer base (McDonald and Brown 2016). Another major issue is that XYZ Bank Limited has been engaged with various lending companies from a long time. Due to this practice, the bank lacks financial resources at the time of necessity. It can be seen that over the years, the various financial facilities of XYZ Bank Limited has decreased due to the effect of global financial crisis. On the other hand, some major threats are posing in front of XYZ Bank Limited. The first threat is the presence of extreme financial regulations. These financial banking regulations may become potential threats for XYZ Bank Limited. The presence of large number of brokers is a major threat for XYZ Bank Limited. It can be seen that the presence of the large numbers of brokers are gaining the traction in the market. This can be a potential threat for XYZ Bank Limited in the near future. These are the major issues from the marketing audit of the XYZ Bank Limited.
Conclusion
From the Porter’s five forces analysis, it can be seen that there is a presence of extreme rivalry in the banking sector of Australia. The government rules and regulation encourages the healthy competition in the banking sector. Due to the presence of many substitute products, the bargaining power of the customers is high. As per the analysis of BCG matrix, insurance is the star products of the company as they have both high market share and high growth. Mutual funds are the cash cow as they have high market share with low growth potential. Leasing is the question mark, as it does not have high market share and growth. Investment banking is the question marks of the company. With the help of EG matrix, four decisions have been made. From the above analysis, it can be seen that two major types of customers of XYZ Bank Limited are the household customers and the business customers. In addition, the effect of global financial crisis is a major influence of the consumption decision of the customers. Four of the major marketing objectives of XYZ Bank Limited are to increase the sales, to be established in the banking market of Australia, to increase product awareness and the process of brand management.
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